05 Jul Filing For Bankruptcy: Pay Information And Problems With Online Pay Information
When you file for bankruptcy, you will be required to report all income for the year you file, and the two years before.
You will have to provide exact figures of your gross income for six months before filing. This is true whether you file for Chapter 7 or Chapter 13 bankruptcy.
If your income is above the median income for your area, you will also have to provide a detailed report of how you use your income. Payments are reported for such items as taxes, insurances, medical needs, support, child care, housing, car payments, various necessities and many other things.
For most attorneys, putting this information together is less difficult if clients have accurate and complete pay records available.
First, you and your spouse, if married, must have all pay records / pay stubs (or “pay advices”) for the six months before filing. This is true even if your spouse is not filing bankruptcy.
Calculation of your pay and deductions is much easier if your pay information contains both the current pay information for that period and also the YTD (year to date) income and deductions. Calculations can be done using only two or three specific pay stubs if the YTD information is shown.
Many companies are moving to a paperless system and are no longer providing a printed copy to their employees. Employees know that if they need it, the information can be accessed online.
What many employees do not know is that many systems will only show the YTD information for the current pay period. Once that period passes, that information is gone and the only way to figure it out it is to manually add up all figures off all the separate pay checks. This increases the risk of errors in addition since there are so many more figures to deal with.
Outside of bankruptcy, this can also be a problem for people needing the information for tax or domestic purposes.
You should always check your pay stubs online to make sure that your company is paying you correctly and that the deductions are right. You need to go a step further and print off a copy of that stub in case you need the full YTD information later.
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